Contracts
Under Alaska contract law, 'novation' means:
AA new contract that substitutes a new party or obligation for an existing one✓ Correct
BAn amendment to add new terms to an existing contract
CThe cancellation of a contract with mutual release of all obligations
DA court order voiding an unconscionable contract
Explanation
Novation is the replacement of one party or obligation in a contract with a new party or obligation, with all parties' consent. In real estate, novation commonly occurs when a buyer assumes a mortgage and the lender releases the original borrower from all liability.
Related Alaska Contracts Questions
- Which of the following is TRUE regarding the Alaska Residential Landlord and Tenant Act?
- In Alaska, a residential lease that violates the Residential Landlord and Tenant Act by including an illegal provision is:
- An Alaska buyer submits an offer with a 48-hour acceptance deadline. The seller does not respond within 48 hours. The offer:
- A 'holdover tenant' in Alaska is one who:
- In Alaska commercial real estate, a 'gross lease' means the tenant pays:
- In Alaska, an 'integration clause' (or 'entire agreement' clause) in a purchase agreement states that:
- In Alaska, a 'termination by abandonment' of a real estate contract occurs when:
- In Alaska, when a purchase agreement includes an 'earnest money' clause, the earnest money is intended to:
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →